ASW: TSX.V
VANCOUVER,
Feb. 12, 2014 /PRNewswire/ - Anglo
Swiss Resources Inc. (ASW: TSX-V) (ASWRF: PK) ("Anglo Swiss" or the "Company") is
pleased to announce that it has reached an agreement in principle
to acquire a private Ontario
company, Gungnir Resources Inc. ("Gungnir"), and all of its
exploration properties in northern Sweden. The properties cover approximately
22,500 hectares (or 225 sq. km) within a highly under-explored and
prospective area known as the "Gold Line" in the Skellefte Mining
District of Sweden. The
region hosts more than 12 million ounces of gold delineated in
existing and mined resources plus several producing and
past-producing VMS base metal mines (See Map Figure 1).
"This is an exceptional opportunity for the
Company moving forward", stated Chris
Robbins, Anglo Swiss' Vice
President. "The acquisition combines a huge exploration land
package, targeting expertise and turn-key entry into a new country.
We are very excited to begin exploration in Sweden".
Key Attributes
Sweden is a
leading miner and major gold, silver, copper and iron ore producer
in the EU and globally ranks 2nd in a 2012 Fraser
Institute Survey for most attractive jurisdictions for mineral
exploration and development. Sweden offers great infrastructure for
exploration and excellent potential for new discoveries
particularly under the extensive but thin layer of glacial till
that masks bedrock over large areas of Sweden.
The Gungnir properties consist of the Nordanas
and Knaften projects located along the southeastern extension of
the "Gold Line". The main target is intrusion-related gold
mineralization, an attractive but under-explored deposit type.
Examples of this type of gold deposit include the Pogo, Fort Knox
mine, and Donlin in Yukon/Alaska,
and Bjorkdal in Sweden which
recently produced its millionth ounce of gold. Initial prospecting
by Gungnir Resources has identified large clusters of anomalous
gold and important pathfinder elements in locally derived boulders
and in outcrop. No drilling is reported on either property in the
Swedish Geological Survey archived drill hole database. A
$200,000 minimum exploration budget
is proposed for 2014.
Transaction Highlights
The consideration to be paid is $300,000 (to cover land acquisition costs and
exploration expenditures to date), issuing 32,586,512 shares of
Anglo Swiss, representing a 15%
equity interest in Anglo Swiss after
giving effect to the acquisition, and the retention of a 2.4% net
smelter royalty ("NSR") by three of the shareholders of
Gungnir with a buyout option of 50% on the NSR for $1,000,000. Closing is expected by no later than
May 30, 2014 or such other date
agreed to by all parties.
Jari Paakki, CEO
of Anglo Swiss is a minority
investor in Gungnir and will be issued $30,000 cash, 6,517,303 shares of Anglo Swiss and a one-third interest in the NSR
on closing (the "Insider Consideration"). The Insider
Consideration issuable to Mr. Paakki is exempt from the valuation
and minority shareholder approval requirements of Multilateral
Instrument 61-101 ("MI 61-101") by virtue of the exemptions
contained in section 5.5(a) and 5.7(1)(a) of MI 61-101 in that the
fair market value of the Insider Consideration to be issued to Mr.
Paakki does not exceed 25% of the Company's market capitalization.
Disinterested shareholder approval to the issuance of the Insider
Consideration will be sought at the Annual and Special Meeting of
the Company to be held in Toronto
on March 28, 2014.
Completion of the transaction is subject to
execution of a formal agreement and a number of conditions,
including, but not limited to, financing of at least $500,000, confirmatory due diligence, the receipt
of all required regulatory approvals, including the approval of the
TSX Venture Exchange, and approval of the shareholders of
Anglo Swiss.
Jari Paakki,
P.Geo., CEO of Anglo Swiss, is the
Qualified Person as defined by National Instrument 43-101 and has
reviewed and approved the technical information in this news
release.
ON BEHALF OF THE BOARD OF DIRECTORS,
Chris Robbins
Vice President and Director
About Anglo
Swiss:
Anglo Swiss Resources Inc. is a Canadian-based
exploration company. Current assets include its Kenville Gold and Blu Starr Flake Graphite
properties in southeastern BC. Further information about the
Company may be found at http://www.anglo-swiss.com or at
http://www.sedar.com.
Cautionary Note Regarding Forward-Looking
Statements: Certain statements made herein may contain
forward-looking statements or information within the meaning of
Canadian securities laws. Such forward-looking statements or
information include, but are not limited to, statements or
information with respect to Anglo Swiss Resources' plan for future
exploration and development of its properties. Forward-looking
statements or information are based on a number of estimates and
assumptions and are subject to a variety of risks and
uncertainties, which could cause actual events or results to differ
from those reflected in the forward-looking statements or
information. Should one or more of these risks and uncertainties
materialize, or should underlying estimates and assumptions prove
incorrect, actual results may vary materially from those described
in forward-looking statements or information. For example,
there is no certainty, that any economically viable mineral deposit
will be located on the Property, or that the Company will be able
to raise sufficient capital to complete all of its exploration and
drill programs. Accordingly, undue reliance should not be placed on
forward-looking statements or information. Anglo Swiss does not expect to update
forward-looking statements or information continually as conditions
change, except as may be required by securities law.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release
SOURCE Anglo Swiss Resources Inc.
PDF available at:
http://stream1.newswire.ca/media/2014/02/12/20140212_C9490_DOC_EN_36592.pdf
